Share Certificates

When organizing a new Provincial or Canadian corporation, one the first thing to be done is to issue shares. It’s at this time that share certificates or stock certificates will be used for the first time. This is the step where shares are issued to the shareholders.

At the time of the issuing, the share certificate must states at the very least the number of shares, the class of shares, the company or corporation’s name, as well as the name of the shareholder to whom the stocks are issued.

The share certificates are usually kept inside the minute book. When shares are issued, the two parts of the certificate are filled out, and the certificate part is given to the shareholder, while the other part is usually kept inside the minute book. The different registers of the minute book must be filled out as well when issuing or transferring stocks.

Share Certificate Definition

There is not official share certificate definition, but in short, a share cetificate is a legal paper document that confirms the ownership by an individual or entity of shares (also called stocks or stock shares) of a corporation.

In Canada, shares can be issued for public and private corporations, regardless of whether or not it’s a Federal Corporation or a Provincial Company.

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